Turkish ammunition producers plan production boost as Europe tries to increase supply

An Estonian K9 self-propelled howitzer firing during an exercise in December 2025. (Estonian Defence Forces)

Two Turkish munitions producers have announced factory openings and investments, as Europe sees increased demand for ammunition, affected by the war in Ukraine and US supply delays because of its operations against Iran.

Arca

On 21 April 2026 Estonia's Defence procurement agency, the Estonian Centre for Defence Investments (ECDI), announced that Arca Baltics Operations, a subsidiary of Turkish company Arca Defense, was to build an ammunition factory with investment worth EUR300 million (USD350 million).

The factory is planned to make: 155 mm artillery ammunition (including extended range variants); 60 mm, 80 mm, and 120 mm mortar rounds; and 122 mm rockets. The ECDI said the company would be granted use of a 141 hectare site in the North Kiviõli defence industry park in north-east Estonia. Production is expected to start in 2028, said the ECDI.

In August 2023, Arca announced the expansion of its small arms ammunition factory at Sungurlu in north-central Türkiye to produce 122 mm rockets, artillery and mortar rounds, and C4. Arca Defense reported export volumes exceeding USD3 billion in 2025.

“ARCA has successfully established a significant large-calibre ammunition production capability in Turkey, and their recent experience in building ammunition factories, along with their market knowledge, is a major advantage,” said Tambet Tõnisson, the ECDI's head of state assets.

Under the agreement, the Estonian government will have the option of procuring ammunition from Arca Baltics Operations.

MKE

Separately, state-owned Turkish explosive, armament and small weapon producer MKE (Makine Kimya Endüstrisi A.Ş) is planning to expand its production infrastructure to support Türkiye's goal of defence autarky.